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'Customary Operations' or a Vacant Building?

BY Rebecca A. Moore
September 02, 2015

Many times, courts are faced with the question of whether a loss location is “vacant” under a commercial property policy when trying to determine if the building owner or lessee is conducting customary operations. This article explores various decisions across the United States addressing what is considered “customary operations,” thereby rendering the property “vacant.”

The Policy Provision

Most standard commercial property insurance policies provide coverage for direct physical loss of, or damage to, Covered Property at the premises described in the Declarations, caused by or resulting from, a Covered Cause of Loss. While those policies typically cover losses resulting from theft and/or vandalism, coverage is usually precluded by the vacancy provision. A typical vacancy provision is:

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